REPORTRESERVE

Hyderabad, Andhra Pradesh -- (SBWIRE) -- 06/20/2012 -- “Global Food and Beverage Industry CEO Business Outlook Survey 2012–2013” is a new report by Canadean that analyzes how global food and beverage industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities for leading purchase decision makers in the global food and beverage industry. This report provides the current size of the marketing and advertising budgets and how spending will change, providing insight into global marketing behavior. The report also identifies future growth, M&A, and e-procurement in the global food and beverage industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global food and beverage industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region and size.

Introduction and Landscape
Why was the report written?
This report is the result of an extensive survey drawn from Canadean’s exclusive panel of leading global food and beverage industry C-level executives. The report provides data and analysis on expenditure, procurement, and developments within the global food and beverage industry. This report includes key topics such as global food and beverage industry expenditure, procurement behaviors and strategies, current size of the marketing and advertising budgets, and how spending will change, providing insight into global marketing behavior.This report identifies the threats and opportunities within the global food and beverage industry, economic outlook trends, and business confidence among global food and beverage industry C-level executives.Most secondary research reports are based on general industry drivers and do not understand the industry executives’ attitude and changing behaviors, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary-research based report by gathering the opinions of multiple stake holders in the value-chain of the global food and beverage industry.

What is the current market landscape and what is changing?
-level respondents from the global food and beverage industry expect increased levels of consolidation, with 56% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in merger and acquisition (M&A) activities over the next 12 months.

What are the key drivers behind recent market changes?
-level respondents’ expectations of increase in consolidation are due to margin pressure on manufacturers, the shortage of skilled labour, cost consolidation, expansion of large companies, new product development, and the increasing cost of raw materials. The projection of consolidation expectations according to C-level respondents could lead to an increase in bargaining power, re-evaluation of existing contracts with suppliers, and the potential need to meet new compliance procedures or work more closely with leading suppliers.

What makes this report unique and essential to read?
“Global Food and Beverage Industry CEO Business Outlook Survey 2012–2013” is a new report by Canadean that analyzes how food and beverage industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report gives you access to category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers. This report provides the current size of marketing and advertising budgets and how spending will change, providing insight into global marketing behavior. The report also identifies future growth, M&A, and e-procurement. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region and size.

Key Features and Benefits
Project industry trends and revenue growth expectations in 2012, and make informed business decisions.

Formulate effective sales and marketing strategies by identifying how buyer budgets are changing the direction of expenditure in the future. Better promote your business by aligning your capabilities and business practices with your customer’s changing needs.

Key Market Issues
Global food and beverage industry C-level respondents identify India to be the most important region for growth among emerging markets, along with China and the Middle East. C-level respondents identify India as offering the largest growth potential among emerging markets over the next 12 months. The Government of India, in order to encourage food production, plans to set up food processing parks across the country, and also plans to allocate a subsidy of US$22 billion for this endeavor. Furthermore, the increased demand for ready-to-eat products and packaged soya food products among middle-class consumers hasencouragedC-level respondents to expand their companies’production capacities in India.

According to the survey, 52% of C-levelrespondents rate ‘responding to pricing pressure’ as the most important business concern in 2012, while 48% and 32% highlight ‘market uncertainty’ and ‘cost containment’ respectively.

The average size of the global annual procurement budget among food and beverage industry C-level respondents is forecast at US$53.7 million for 2012. In addition, the Canadean industry survey reveals that C-level respondents’ procurement expenditure is projected to increase by 5.1% over the next 12 months.

‘Quality’, ‘level of service’, and ‘price’ are considered very important factors for C-level respondents while selecting a supplier, whereas ‘supplier's environmental record’, ‘supplier's CSR reputation’, and ‘proximity of supplier operations’ are considered the least important factors.

The main reasons for an expected increase in the level of consolidation in the global food and beverage industry have changed to new product development, increase operational efficiency, and to achieve economies of scale.

Key Highlights
An analysis of responses by food and beverageC-level respondents reveals that ‘new product development’, ‘IT infrastructure development’, and ‘machinery and equipment purchase’ will record a significant increase in capital expenditure over the next 12 months.

As global food and beverage demand is projected to increase in the next 12 months,C-level respondents plan to significantly increase their capital expenditure on ‘new product development’.

According to the survey, 44% of C-level respondents project an increase in investment in ‘IT infrastructure development’.For example, in January 2012, Glanbia, a food company based in Ireland, announced the implementation of a print and apply solution from Zetes, which will enable the company to meet the new customer requirement for full product traceability and the highest possible quality standards.

Global food and beverage industry C-level respondents plan to increase capital expenditure on ‘machinery and equipment purchase’ over the next 12 months. For example, in November 2011, Australian brewing company Foster's Group Pacific announced that it plans to invest US$7.7 million in enhancing the infrastructure of its subsidiary Samoa Breweries Limited (SBL). SBL is engaged in the manufacture and sale of beer and soft drinks, and the main intention of the investment is to upgrade the production infrastructure of SBL, primarily in the areas of product quality, plant performance, plant efficiencies, health, safety, and environment.

‘Corporate and brand websites’, ‘social media and networking sites’, ‘conferences and events’, and ‘public relations’ are expected to register the highest investment over the next 12 months. Conversely, ‘telemarketing’, ‘outdoor’, ‘radio’, and ‘sponsorship’ advertisement are expected to attract the least investment."